What are health spending accounts used for?
Health spending accounts can help pay for eligible health care expenses and may offer tax savings. Health savings accounts (HSAs), flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) provide different ways to manage out-of-pocket health care costs.
About the types of health spending accounts
What is a health reimbursement arrangement (HRA)?
A health reimbursement arrangement (HRA) is a tax-free spending account funded by your employer to help pay for qualified medical expenses. HRA funds can be used for eligible health care expenses like copays, prescriptions, and dental or vision care, depending on your employer's plan.
What is a health care flexible spending account (FSA)?
A flexible spending account (FSA) is an employer-sponsored benefit that lets you set aside pretax funds for eligible health care expenses. FSA funds can be used to pay for qualified medical, dental, vision, hearing and prescription costs.
What is a health savings account (HSA)?
A health savings account (HSA) is a tax-advantaged account that helps you save and pay for eligible health care expenses. Individuals enrolled in an eligible high-deductible health plan can contribute to an HSA, and unused funds can carry over from year to year.